The Union cabinet has approved a revival plan of Rs 11,440 crore for the debt-ridden Rashtriya Ispat Nigam Limited (RINL). This information was given in a statement issued on Friday. The cabinet Committee on Economic Affairs (CCEA) headed by prime minister Narendra Modi has approved a revival plan of Rs 11,440 crore for RINL. Information and Broadcasting minister Ashwini Vaishnav said that this revival package will solve many old problems of RINL.
What is special in RINL's revival plan
The official statement said that this investment includes Rs 10,300 crore as share capital in RINL and conversion of working capital loan of Rs 1,140 crore into seven percent non-cumulative preferential share capital. It can be redeemed after 10 years, so that RINL can be kept in working condition.
Will help in starting blast furnace operations
The statement also said that the share capital investment of Rs 10,300 crore in RINL will help it overcome operational problems related to raising working capital and start blast furnace operations in the most productive manner.
The company will reach full production capacity
The revival package will enable the company to gradually reach its full production capacity, which is important. It is in the national interest to bring stability to the indian steel market by increasing steel production and to save the livelihood of employees (regular and contractual) and people dependent on the operation of the steel plant. The revival plan envisages that RINL will start full production with two blast furnaces in january 2025 and with three blast furnaces by august 2025. Under the Ministry of Steel, RINL operates Visakhapatnam steel plant (VSP), the only offshore steel plant in Andhra Pradesh.
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